Syllabus
for Global Commerce Law & Taxation
Ms. Ana Penn and IBLS academic staff
Faculty
Global Commerce Law & Taxation (3 cr. Summer only): Joe, who resides in San Diego, gives you a credit card number in payment for goods that you will ship to him from Denver. You ship the goods and bill the credit card account. And, baring any problem with the goods on arrival, the transaction is completed. Not so the cross border transaction. The cross border vendor must be aware of international shipping forms, transfer agents, customs and tariff administration just to ship goods to Montreal, where secure shipping links are in place, and courier services can handle most problems. When a customer from Djibouti orders the same goods, it is not reasonable to assume that the same shipping and payment conventions will apply. Djibouti is in an African Free Trade Zone, see the COMESA Clearing House for commercial bank clearing operations and debtor balances. The more appropriate way to do business worldwide is by the use of an electronic purse. Even if you are shipping to California, do you know the local tax rates that apply? In California there are 58 counties, each with its own rate. Expand that problem to include European Union tax regimens, and consider the OECD Model Income Tax Convention and your eyes begin to spin. The students in this course will deal with the concepts of Cross Border transactions, banking and payment mechanisms, international e-commerce taxation, and online financial services.
Ana D. Penn is the CEO and Executive Director of International Business Law Services, (IBLS), www.IBLS.com headquartered in Irvine, California. Designed to help business and legal professionals understand Internet laws and regulations IBLS provides worldwide interactive source of information and counsel for legal issues relating to the Internet. Ms. Penn coordinates and directs IBLS’ legal and management teams, consisting of law professors, attorneys, finance, marketing and IT professionals. Ms. Penn has a master of law in international banking and financial law from Boston University, School of Law, Boston, Massachusetts; a master of law in taxation from Golden Gate University, School of Law, California and a juris doctor degree from Western State University, College of Law, California. She also studied European Community law at Cambridge University in England.
E-COMMERCE TAXATION COURSE MODULES
Module 1 Introduction to E-Commerce Taxation
Ÿ Models of the Internet economy and their impact on E-Commerce
Ÿ Tax rules of E-Commerce transactions
Module 2 E-Commerce Taxation Issues
Ÿ The key reasons that E-Commerce raises tax issues
Ÿ Taxing Jurisdiction and E-Commerce Transactions
Ÿ Electronic Commerce and Transfer Pricing
Module 3 Tax Compliance
Ÿ E-Commerce Tax Administration and Compliance Issues
Ÿ Suggested Solutions to the Cost Burden of Global Tax Compliance
Ÿ Administrative and Compliance Costs of VATs in Selected OECD Countries
Module 4 Outbound Transactions and Inbound Transactions
· Transactions in E-Commerce involving U.S. Citizens and residents, and domestic corporations
· E-Commerce transactions initiated by non-resident aliens and foreign corporations
Module 5 Consumption Tax
· Rules for the Consumption Taxation of Cross border Trade
· Guidelines on the Definition of the Place of Consumption for Consumption Taxation of Cross-Border Services and Intangible Property
Module 6 Sales and Use Tax
· State Taxation of the Internet
· Concept of Nexus in Sales and Use Taxes
· Recommendations of Collecting Taxes on Out of State Sales
Module 7 Federal Income Taxation
· Federal excise taxation of the internet
· The international tax provisions
Module 8 International E-Commerce Taxation
· Permanent Establishment Definition
· Attribution of Profit to a Permanent Establishment involved in E-Commerce Activities
· Treaty Characterization Issues of Payments on Various E-Commerce Transaction
Module 9 International Taxation of Digital Products and Services
· Classification of Payments Resulting from Digital Transactions
· Classification of Payments of Services and Know-how
· Income Tax and Electronic Commerce
Module 10 International Organizations
· Foreign Corporation and E-Commerce
· The impact of corporate taxes
· Trading by Non-residents – Permanent Establishment
· Capital Allowances
Module 11 Taxation of Offshore E-Commerce
· A quick overview of major developments in the taxation of e-commerce with special reference to offshore e-commerce
· US taxation of onshore and offshore e-commerce transactions including recent legislative developments
· EU taxation of onshore and offshore e-commerce transactions including recent legislative developments
Module 12 Regulation of Offshore E-Commerce
· A quick overview of major developments in national and international regulation of e-commerce with special reference to offshore e-commerce
· A review of the range of laws impacting the conduct of onshore and offshore e-commerce
· International initiatives to regulate e-commerce and offshore e-commerce; anti-offshore initiatives.
· International initiatives from the G7, the OECD and the EU to restrict offshore regimes and their tax-saving possibilities
· The laws passed in 'high-tax' countries and links to descriptions of the legislative situation in each offshore jurisdiction
Module 13 E-Commerce and Tax Policy
· Issues under consideration by government officials, politicians, academics and policy makers
· No Multiple and Discriminatory Taxation
· No Taxation without Representation
· Tax Competition, not Tax Collusion
· Protect Consumer Privacy
· Reform or abolish “Taxes”
Module 14 Future Direction of Tax Laws in E-Commerce
· The advisory commission of Internet Tax Freedom Act recommendations on Use and sales taxes
· Business activity and corporate income taxes
· Internet access, taxation of telecommunications services and providers
· International taxes tariffs.
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